Bitcoin has been quite popular since its launch in 2009. Back in 2010 and 2011, very few people were fascinated by the crypto world. However, currently, the entire world seems to be intrigued by the digital coin. With this in mind, many people are interested in buying Bitcoin.
As more and more crypto enthusiasts want to hold a small part of the most popular cryptocurrency, crypto companies developed many ways to buy Bitcoin.
In this article, we are going to talk about how to buy Bitcoin with a prepaid card.
What Is a Prepaid Card?
Prepaid cards are also known as prepaid debit cards, pay-as-you-go cards, or stored-value cards. It’s a type of payment card that you can buy and load with money before using to make purchases. Basically, it is like a gift card, but instead of being limited to a specific store, you can use it anywhere that accepts the brand on the card (Visa, Mastercard, etc.). It’s like having debit cards without the need of a bank account.
They can be found at banks or retail locations like grocery stores and drugstores.
The card has a set balance, or you can add money and use it to make purchases until it is depleted. Once the money runs out, you need to reload the card before making any more purchases. They work similarly to other cards, where you can swipe or insert them into a payment terminal to make a purchase and, sometimes, withdraw cash from an ATM.
It’s also great for budgeting your money or for people who are trying to avoid debt.
How to Buy Bitcoin with Prepaid Card
The Prepaid card companies have made buying crypto with prepaid cards even more effortless. Also, prepaid cards are widely used as billions of cardholders use them to purchase products and services. These cards’ popularity extended to the crypto space as more crypto investors decided to buy Bitcoin with prepaid cards.
Buying Bitcoin with prepaid cards doesn’t make the process cheaper. However, prepaid cryptocurrency purchases have several advantages for the buyer. There are several steps to buying Bitcoin with prepaid cards, as outlined in this article.
Read on to discover all you need to know about how to buy Bitcoin with a prepaid card.
Step 1: Choose a Bitcoin Exchange
Several Bitcoin exchanges accept prepaid cards when purchasing Bitcoin. (Some of these exchanges will be discussed in detail later in the article). So, make sure you choose an exchange that accepts prepaid cards first. In order to make your steps as straightforward as possible, we will use the Coinbase exchange.
Step 2: Create an Account
Once you decide upon a Bitcoin exchange, you must create an account. The account will allow you to deposit funds through your prepaid card, which you can use to purchase the amount of Bitcoin you want.
Also, we recommend that when you create your account, follow the verification procedure to access the most important features of the chosen platform.
Before you begin the verification process, ensure you have all the necessary documents, such as a government-issued ID and proof of residence (billind address). The required documents may vary depending on the exchange, so check their website for specific information.
Step 3: Deposit Funds into the Created Account
Buying Bitcoin through a crypto exchange will require depositing some funds into the account you have just created. The funds deposited should be equivalent to the amount of Bitcoin that you intend to purchase. Before using the wallet, you should ensure that your internet connection is fast and stable before using your wallet so that you do not have any trouble.
Step 4: Purchase the Amount of Bitcoin Selected
The final step is purchasing how much Bitcoin you intend to. Click on “Buy,” which will later give you the option to select the amount of Bitcoin you want based on the number of funds you have in your wallet.
Where You Can Buy BTC with Prepaid Card
The number of Bitcoin users who want to buy Bitcoins with their prepaid cards has increased. This has led to a surge in the number of services that let one buy BTC with a prepaid card. Here are some of the platforms where you can buy Bitcoin with a prepaid card.
Coinbase
Coinbase is one of the most famous names in the world of crypto. Based in the USA, this service aims to facilitate digital exchanges. Its existence since 2012 has allowed it to deal gain market value since it has gained popularity as gradually and as steadily as Bitcoin. Currently, on Coinbase, there are 236 coins and 550 trading pairs, and it serves at least 107 countries.
In the previous section, we presented all the steps you need to take to deposit money into your Coinbase account via a prepaid debit card.
If you want to find more, you can check our Coinbase review.
Binance
Binance is currently the most popular cryptocurrency exchange that enables users to buy, sell, and trade a wide range of digital assets. Founded in 2017, Binance quickly established itself as one of the leading crypto exchanges in the industry, thanks to its user-friendly interface, high-security standards, and wide variety of trading options. The platform supports more than 350 cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and many others. Binance also offers a variety of trading pairs, including both crypto-to-crypto and crypto-to-fiat options, making it easy for users to trade their preferred assets.
In order to deposit money on your Binance account using a prepaid card, you have to log in to your Binance account and tap on the “Wallet” from the bottom right section of the screen. Now, you can select the “Deposit” button, the “Cash” option, choose the currency you want to make the transaction, and select your prepaid debit card introduced in the app. Confirm your transaction, and now you are able to buy crypto on Binance using money from your prepaid card.
However, for your prepaid card to be used on Binance, the Binance platform must be part of that list of companies accepted by the bank issuing the prepaid card (only bank-issued prepaid cards are accepted on Binance) or that are crypto-friendly. Otherwise, the transaction will not take place on Binance. This information has been obtained and highlighted by the CSS Binance team.
If you want to find more, you can check our Binance review.
eToro
eToro is a highly rated platform, particularly in Europe, where it is widely promoted. One of the key benefits of using this platform is that it stores funds in reputable banks to provide added security. eToro claims to charge a 1% commission on all cryptocurrency trades and no commission on stock trades.
Launched in 2007, eToro developed a crypto exchange that is perfect for buying Bitcoin with a prepaid card. Creating an account is an easy and quick process, as all users have to do is enter personal information and a copy of their ID.
You can deposit money into your eToro account by going to the top left menu and clicking on the “Deposit Funds” button. Then, select from the top toggle the debit/credit card option, enter the amount you wish to deposit and choose the prepaid debit card you have entered in the app and click on the bottom “Deposit” button.
For in-depth information on eToro, check out our comprehensive review.
Crypto.com
Crypto.com, previously known as Monaco, was founded in 2016 to bring cryptocurrency into the mainstream. The platform gained popularity with its MCO Visa Card, powered by an MCO token which was released through the ICO in 2017.
Users can buy Bitcoin directly via Crypto.com App by debit card or credit card. Crypto.com now promotes buying crypto at a 0% credit card fee until the end of June 2020 with payment by credit card or prepaid card.
Users can also buy Bitcoin via fiat currencies by bank transfer.
To deposit money on your Crypto.com account using a prepaid card, you have to log in to your Crypto.com account, tap on the “Deposit” button from the main page, choose fiat, then select the currency in which you want to make the transaction, choose your prepaid card introduced in the app and that’s it.
Crypto.com supports up to 8 fiat currencies (USD, JPY, EUR, etc.) deposits and 251 different crypto assets, so Crypto.com is a perfect place to buy and sell cryptos, as well as to perform Bitcoin payments.
Get a complete understanding of Crypto.com by reading our thorough review of the platform.
CEX.io
This exchange has been in operation since 2013, established in London, UK. Apart from Bitcoin, this exchange deals with several other cryptocurrencies. CEX.io supports several forms of payment, including the use of prepaid cards.
To deposit money on CEX.io using your prepaid card, access their app, log into it, and then access the wallet at the bottom of the app. Once there, click on the “Deposit” button, choose the currency in which you are depositing, enter the desired amount and use the prepaid card entered in the app.
Discover everything you need to know about CEX.io by reading our in-depth review.
Paxful
Paxful is also referred to as the eBay of Bitcoin because it connects Bitcoin buyers with sellers from all over the world. This service gives the buyer several options regarding their preferred mode of payment, and buying crypto with a prepaid card is one of the available options.
To deposit money using a prepaid card on the Paxful platform, log in to your Paxful account, navigate to the Dashboards, and select either the Classic or Vendor Dashboard to manage your security deposit. On the Dashboard, go to My Offers and click Deposit on the Security deposit section. Confirm the transaction by clicking Deposit in the confirmation window.
If you want to find more, you can check our Paxful review.
Bitpanda
This crypto exchange is based in Vienna, Austria, and is one of the most famous exchanges in Europe. Bitpanda was established in 2014, and just like Coinbase, it has an array of payment options, with prepaid cards being one of them. The fees used in this exchange vary significantly from other exchanges. However, it still offers effective services to its users.
To deposit via prepaid cards using Bitpanda’s web platform, you must log in and click the “Deposit” button from the main page. Then, select the currency you want to deposit, select the payment method according to the card processor you have, enter the amount and confirm the transaction.
For in-depth information on Bitpanda, check out our comprehensive review.
Coinmama
Coinmama is one of the most straightforward exchanges where one can buy crypto with a prepaid card. This exchange was created in 2013 and has been operating ever since. The exchange gives room for crypto investors to buy and sell popular coins, including Bitcoin. Its array of products has helped it gain popularity over the years, as its operations are based in at least 180 countries.
On Coinmama, you can deposit money when you want to buy a currency. Choose the desired currency, click “Buy,” and choose the debit/credit card option. Fill in the required information and confirm the transaction, and it’s done.
Get a complete understanding of Coinmama by reading our thorough review of the platform.
Paybis
Paybis is a UK-based exchange that supports the selling and buying of Bitcoin and five other cryptos through a variety of payment methods, including credit and debit cards issued by Visa and MasterCard. Of course, Paybis accept prepaid cards.
You do not make deposits on the Paybis platform, only payments. So, tap “Buy” on the crypto that you want to own, insert your prepaid card data and confirm the transaction.
What Are the Advantages of Buying Bitcoin with Prepaid Card?
Like any other widespread practice in the crypto industry, buying Bitcoin with a prepaid card has advantages. Some of these advantages are:
- Ease of Use – Prepaid cards, just like other cards, are easy to use compared to other methods of buying Bitcoin. You only need to provide the card details, and you are ready to buy BTC.
- Security – If you decide to buy Bitcoin using a prepaid card, you should know that it is more secure than other methods since less customer information is revealed in the process. Also, because it is not connected to a bank account, stealing it will not grant access to unlimited funds, only what is loaded on the card.
- Instant Buy – Using prepaid cards ensures that you get your Bitcoin almost instantly, compared to methods like bank transfer, which may take days to receive your coins. This saves time waiting for the purchased Bitcoin to arrive in the wallet.
What Are the Downsides of Buying Bitcoin with Prepaid Card?
Using prepaid cards also has its disadvantages which are as follows:
- Higher Fees – Fees for buying Bitcoin with a prepaid card are usually higher than other methods. For instance, a bank transfer may only cost 1% instead of the 5% charged by some platforms.
- Few Platforms – Not many exchanges support the use of prepaid cards to buy Bitcoin. This makes the options quite limited, and customers may not be able to use their preferred exchanges for this process.
- KYC – One of the practices cryptocurrencies are based on is anonymity. Buying Bitcoin using prepaid cards strips users of such privilege, as KYC is mainly required to buy Bitcoin using this method.
- Limited Purchase – Some platforms do not allow the use of prepaid cards to buy large amounts of Bitcoin. This is a major problem if you wish to buy a significant amount of Bitcoin at once.
In Conclusion
Purchasing Bitcoin could easily pass as the most common trade of the 21st century. Despite increased interest in buying and selling cryptocurrencies, it is essential to note that exchange platforms are centralized and prone to hacking. We recommend before investing, read the Bitcoin price prediction.
In that case, it is not safe to leave your purchased Bitcoins on the exchange platform. It would be better to transfer your coins to your crypto wallet.
